Question

To segregate duties involving cash receipts, specific responsibilities are assigned to various employees. Put the following steps in the correct chronological order.

a. Prepare a deposit slip for the day's cash receipts.
b. Record the cash receipts in the accounting system.
c. Open the mail and list the checks received.
d. Physically deposit the cash and checks in the bank.
e. Compare the bank deposit slip to the accounting records.
f. Receive and open mail containing checks and cash.
g. Update the accounts receivable ledger.
h. Endorse checks received.

Answer 1

The correct chronological order of steps to segregate duties involving cash receipts is: receive and open mail containing checks and cash, list the checks received, physically deposit the cash and checks in the bank, prepare a deposit slip for the day's cash receipts, record the cash receipts in the accounting system, update the accounts receivable ledger, compare the bank deposit slip to the accounting records, and endorse checks received.

Step-by-step explanation:

1. Receive and open mail containing checks and cash.
2. List the checks received.
3. Physically deposit the cash and checks in the bank.
4. Prepare a deposit slip for the day's cash receipts.
5. Record the cash receipts in the accounting system.
6. Update the accounts receivable ledger.
7. Compare the bank deposit slip to the accounting records.
8. Endorse checks received.